managing the financial fallout of covid-19 · 7/28/2020 · •traditional unemployment assistance...
TRANSCRIPT
Managing the Financial Fallout of Covid-19
1
YOU WILL BE MUTED DURING THIS WEBINAR
July 28, 2020
Agenda
• Emergency Aid Programs
• How and why to consider personal bankruptcy
• Why arts organizations should consider a merger
• Sunsetting a nonprofit with dignity
2
• Traditional Unemployment Assistance (UC) - ½ of weekly salary up to $572/week (minimum $195/week).
• Pandemic Unemployment Assistance (PUA) - expanded UC to gig workers, Independent contractors, self-employed, and persons without sufficient work history to qualify for regular UC.
Note: some applicants with both regular income and GIG income have receiving lower UC benefits; a coalition of national VLA’s are advocating to address this issue.
• Pandemic Emergency UC (FPUC) - added 13 weeks of UC benefits when regular 26 exhausted = 39 total weeks of coverage.
Note: the added $600/week on top of regular UC is expired on 7/25/020 & Congress has not yet passed an extension.
Unemployment Compensation
3
Paycheck Protection Program (PPP)
• Small businesses and nonprofits with employees may be eligible for a PPP loan equal to 2.5 times its monthly payroll.
• The PPP Loan becomes a grant if the monies are used to pay the salaries of employees and things like rent, utilities, etcneeded to keep the doors of business open.
• Congress added a second round of funding to the PPP program but the deadline for filing is now August 8, 2020.
4
• Up to $10,000 grant funding available to small businesses.
• The grant does not need to be repaid but the amounts will be deducted from any EIDL Loan approved by the Small Business Administration.
5
Economic Injury Disaster Loan (EIDL) Emergency Advances
Housing• If you can’t cover your rent or mortgage, contact your
landlord or lender immediately. Do not wait until you’re behind on payments.
• Eviction and foreclosure proceedings are currently paused in Pennsylvania until August 31.
• You should pay if you can; rent or mortgage is still owed.
• Assistance with rent (up to $750/month) or mortgages (up to $1000/month) may be available through the PA Housing Finance Agency. Funding came from the CARES Act.
6
Utilities• The Pa Utilities Commission has suspended terminations of
service under their jurisdiction as long as Pennsylvania is formally in a disaster. The utilities include:– Electric– Natural Gas– Water– Wastewater– Telecommunication– Steam
• Does not apply to municipal utilities but many are also suspending shut offs.
• If you are struggling to pay your utility bills, contact your service provider for possible emergency assistance programs.
7
Loans and Other Debt• Consumer loans like car loans
– 90 day grace period.– No motor vehicle repossessions for 60 days.– No adverse credit reporting.
• Credit Cards
– Contact you card company to request a delay in repayment or reduction in interest rates.
– Consider paying only the minimum.
• Student Loan
– Federal loan repayments suspended until September 30 with no interest accruing during the period.
– Other student loan lenders may offer flexibility if asked.
• Bank fees
– Banks are providing a 90 day grace period from fees and charges like overdraft, late, insufficient and monthly service fees.
8
Overview
Bankruptcy Options
Debts
Assets
Income
Chapter 13
Conclusion
10
Bankruptcy Options
Chapter 7
▪ Discharges debts and protects assets
Chapter 13
▪ Payment plan for individuals and sole proprietors
Chapter 11
▪ Business reorganization
11
Debts
A Chapter 7 Bankruptcy Eliminates Unsecured
Creditor Claims
▪ Credit cards
▪ Personal/signature loans
▪ Medical bills
▪ Deficiency claims
12
Debts (cont.)
Non-dischargeable Claims
▪ Taxes
▪ Domestic Support Obligations
▪ Student Loans
Secured Debt
▪ Mortgages
▪ Car loans
▪ Tax liens
13
Assets Exemptions Allow for the Protection of Assets
▪ Home
▪ Spillover
▪ Household Furnishings
▪ Vehicle
▪ Tools of the Trade
▪ Retirement Accounts
Prohibited Actions in Anticipation of Bankruptcy
▪ Transfers to family
▪ Sales for inadequate consideration
14
Income
Means Testing to determine eligibility for
Chapter 7
▪ State median income
▪ Family size
Schedules of income and expenses
15
Chapter 13
Not Eligible for Chapter 7
▪ Excess income
▪ Non-exempt assets
Mortgage Foreclosure
Tax Problems
Treatment of Unsecured Creditor Claims
16
Conclusion
“One of the fundamental goals of bankruptcy relief is to afford a ‘fresh start’ to honest, but unfortunate, debtors.”
In re: Reschick (Judge Deller, 2006)
17
Why Consider a Structural Change
Evaluating the Potential Change
Corporate Transaction and Restructure Options
Joint Venture
Dissolution
Dissolution Accompanied by Asset Acquisition
Merger
Merger (Continued)
The Attorney General & Fundamental Change Transactions
Review Protocol for AG Office
Formal Affiliation
Best Practices for Corporate Transactions & Restructures
Questions:
Artists Will Be Essentialin a Recovery
• Artists navigate the unknown. We go in our studios and ask new questions, pushing away from shore and into uncertainty. In this time of roiling uncertainty, we know how to stay awake and responsive, and how to help others do the same.
• Artists build possible futures. This moment desperately needs futures beyond the sobering medical news and the jarring contortions of policies and markets.
• We are connectors, conveners, community builders.
• We understand rhythm, flow, and negative space. Not everything we do right now needs to be doing. Silence is a way of telling. Stillness is movement.
• We bear witness. We listen to and reveal what it is like to be alive right now.
• We use what we have on hand to build what we need. We make sculptures from discarded materials, dances out of everyday gestures, music from found sounds. At a time when many are lamenting what is being taken away, we know how to begin with what we have.
• We create the images and songs and dances and stories that are needed, that comfort and challenge and inspire, that return us to our deeper selves or urge us forward into transformation.
• We build alternative economies based in collaboration, barter, D.I.Y. resourcefulness, and repurposing what others do not value.
• We challenge assumptions and reframe the world. How we see this current emergency and how we see ourselves within it will determine how we emerge from it. Artists look past the noise to deeper, more radical possibilities.
Andrew Simonet, Artists U
Simonet artists Covid-19 (1).pdf
32
Covid-19 Resources
• Greater Pittsburgh Arts Council:- Resources for the creative community including the Emergency Fund for Artists -http://www.pittsburghartscouncil.org/about/news/25-press-releases/5196-supporting-the-arts-during-covid19
• HR Advisors - A free GPAC member benefit to provide organizations with get HR guidance by email or by phone: HR [email protected] or 412-404-6934
• PA Association of Nonprofit Organizations: Information for Pennsylvania nonprofits - https://pano.org/covid-19-resources/
33
Covid-19 Resources
• Neighborhood Legal Services: General legal information for low income clients - https://www.nlsa.us/covid-19/
• Pennsylvania: General information on what Pennsylvania is doing to help for individuals and businesses -https://www.pa.gov/guides/responding-to-covid-19/
• PA Office of Unemployment Compensation: Information on eligibility and how to apply for unemployment compensation -https://www.uc.pa.gov/Pages/default.aspx
• PA Attorney General: General information on Covid resources -https://www.attorneygeneral.gov/covid-rights/
34
Covid-19 Resources• Housing Court: FAQ’s on landlord/tenant issues -
https://t.e2ma.net/click/811mzm/kr924g/4qy12yb
• US Department of Labor: Federal resources to help workers and employers - https://www.dol.gov/coronavirus
• US Consumer Financial Protection Bureau: Summary of mortgage relief options -https://www.consumerfinance.gov/about-us/blog/guide-coronavirus-mortgage-relief-options/
35
Mental Health Resources• PA Support & Referral Helpline: 1-855-284-2494
• National Alliance on Mental Illness, Keystone Affiliate: namikeystonepa.org or 412-366-3788.
• Get Help Now Hotline (for substance use disorders): 1-800-662-4357
• National Suicide Prevention Lifeline: 1-800-273-TALK (8255)
– Línea Nacional de Prevención del Suicidio: 1-888-628-9454
• Crisis Text Line: Text "PA" to 741-741
• Veteran Crisis Line: 1-800-273-TALK (8255)
• Disaster Distress Helpline: 1-800-985-5990
36
